Blackstone will purchase at least 84% of HP Enterprise’s majority stake in Mphasis for 430 rupees ($6.49) a share, showing the private-equity firm’s optimism in Mphasis’s prospects even as the industry faces technological challenges.
Besides buying HP Enterprise’s stake, Blackstone said Indian takeover laws require it to buy 26% of Mphasis’s shares via a mandatory tender offer to the company’s public shareholders. Depending on the demand for that offer, the private-equity firm said it could end up spending as much as $1.1 billion on its investments in Mphasis.
Kirkland & Ellis is representing Blackstone on the leveraged financing to partly fund its acquisition of at least 84 percent of Hewlett Packard Enterprise’s stake in Mphasis, an India based outsourcing firm listed on the Bombay Stock Exchange. The deal could value Mphasis at up to US$1.1 billion. The transaction was announced on April 4, 2016.
The Kirkland team is led by Hong Kong debt finance partner David Irvine (Picture) and Hong Kong corporate partner Nicholas Norris.
Loeb & Loeb LLP has advised HP with a team including Akiba Stern aAlison Pollock Schwartz and Benjamin B. Kabak.
Linklaters is representing the arrangers of the financing.
Involved fees earner: David Irvine - Kirkland & Ellis; Nicholas Norris - Kirkland & Ellis; Akiba Stern - Loeb & Loeb Llp; Alison Pollock Schwartz - Loeb & Loeb Llp;